Brussels, 29 th October 2009
State aid: Commission approves changes to Danish short-term export-credit insurance scheme
The European Commission has authorised, under EC Treaty state aid rules, changes to a Danish short-term export credit insurance scheme initially approved on 5 May 2009 (see ). The Commission found the amended scheme to be consistent with the Commission Communication on short-term export-credit insurance and with the Temporary Framework for state aid measures to support access to finance in the current financial and economic crisis (see ). In particular, the measure tackles a clear market failure.
The aim of the Danish short-term export credit scheme is to support exporters by complementing insurance cover available on the private market. According to the Danish authorities, the reinsurance scheme introduced in May for temporary non-marketable export credit insurance, has become insufficient to adequately provide Danish exporters with the necessary coverage for sound short term export credit transactions.
The amendments aim at tackling remaining problems of unavailability of insurance cover in the private market and include:
an extension of the list of markets that are temporarily non-marketable
changes to the terms of the quota-share system approved on 6 May, namely a reduction of both premiums and insurers' and exporters' minimum retention rate
the introduction of an additional top-up window to complement the existing quota-share system.
The Commission concluded that the amended scheme complies with the conditions laid down in its Guidance Communication (see ). In particular, sufficient proof has been provided that the necessary cover has become unavailable on the private insurance market as a consequence of the financial crisis and that the premiums are aligned to those of the private market.
The Commission has authorised the measure, which was notified under the Temporary Framework, until 31 December 2010.